NSSF wins Sh363.6 million case against Mwanza school operator

The High Court of Tanzania, sitting in Mwanza, has ordered the trustees of the Progressive Islamic Education Foundation, which operates Bismack Pre and Primary School, to pay more than Sh363.6 million to the National Social Security Fund (NSSF). This significant sum includes unpaid workers' contributions and accumulated penalties.

The ruling, delivered on Friday, June 12, 2026, by Justice Emmanuel Ngigwana, stemmed from a lawsuit filed by the NSSF Board of Trustees and the Attorney General. The court found that the education institution failed to file a defense or seek an extension to contest the claim within the legally prescribed timeframe. Consequently, the matter was decided through a summary procedure.

According to the judgment, the foundation must pay over Sh187 million in statutory employee contributions that were not remitted to NSSF between January 2018 and February 2024. Additionally, the court ordered the payment of over Sh176.6 million in penalties and additional contributions due to delayed remittances. The court also awarded an interest of seven percent per annum from the date of judgment until full settlement, along with legal costs.

NSSF informed the court that the institution, a registered contributing employer, had neglected its legal obligation to remit employees' social security contributions despite repeated follow-ups and demand notices. Justice Ngigwana stated that the documents presented by the claimants, including the employer's registration certificate, audit reports, schedules of unpaid contributions, and demand letters, sufficiently substantiated the debt. The court concluded that the delayed remittances had impeded NSSF's statutory duty to collect and safeguard workers' contributions for future benefits. In the absence of any defense from the institution, the court entered judgment in favor of NSSF, mandating the payment of the full amount plus interest and costs.

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The plaintiffs have proved that the defendant, as a registered employer with NSSF, failed to fulfil its legal obligation to remit employees’ contributions.